An Aer Lingus jet comes in to land at Dublin Airport (Image: ADRIAN DENNIS/AFP/Getty Images)

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The Cabinet has agreed to sell the Government's 25% stake in Aer Lingus following talks this evening.

This could clear the way for British Airways owner International Airlines Group (IAG) to take over the flagship Irish airline, though the Cabinet decision is subject to a vote in the Dail tomorrow.

Transport Minister Paschal Donohoe said: "Today I updated the Cabinet on the latest position in relation to the IAG proposal to make an offer for Aer Lingus.

"This follows detailed discussions with IAG over a number of months on the information and commitments that IAG would be willing to include in an offer.

"IAG has provided additional information and certain commitments in relation to its proposal.

"Following detailed consideration of this and all of the issues surrounding a potential disposal of the State’s shareholding in Aer Lingus, the Government has decided that it will support IAG’s proposal."

Aer Lingus is the subject of a €1.4 billion bid from the company.

Earlier Taoiseach Enda Kenny had told the Irish parliament his coalition "will make a decision this evening that will be in the best interests of the country".

While bosses at the airliner have backed the sale, unions and opposition parties fear job losses, reduced connectivity in and out of Ireland and less competition if the share is sold.

Repeated advances from IAG, spearheaded by Irishman Willie Walsh, have been rejected on the back of the concerns.

However, Mr Donohoe was expected to make a recommendation to his Cabinet colleagues today, based on an expert group review which was reportedly in favour of a sell-off.

An Aer Lingus plane (Image: PA)

The Taoiseach said on previous occasions approaches by IAG to take over Aer Lingus were dismissed on the basis there were no "cast iron guarantees" on contentious demands over employment, growth and connectivity.

Mr Kenny said the Cabinet have since been advised of a "number of changes" to earlier takeover proposals.

As well as job creation, Dublin wanted commitments on growing flights between Ireland and the US as well as boosting traffic in and out of regional airports at Cork, Shannon and Knock.

It also sought details of an IAG plan to turn the Irish capital into a transatlantic hub.

IAG's original offer to keep Aer Lingus's Heathrow slots for five years - considered critical to Ireland's tourism and business links - came under criticism for not being far reaching enough.

A Government spokeswoman described the Cabinet talks as a "positive meeting with good engagement".

Refusing to be drawn on his personal preference, Mr Kenny added: "My view is that the decision we make has to be in best interests of our people and our country."

Opposition parties Fianna Fail, Sinn Fein and the Socialist Party have all argued against a takeover.